Chemical giants Solvay SA and Ineos Group plan to end their Inovyn 50/50 chlorovinyls joint venture at least 18 months earlier than originally planned, with Ineos set to become the sole shareholder.
After a protracted process to merge their respective vinyls businesses, which involved divestment of some assets to gain approval from antitrust authorities in Brussels, Solvay and Ineos formed Inovyn in July 2015. At that point, Solvay had planned to exit the joint venture in July 2018.
The companies now expect the transaction enabling Solvay's exit from Inovyn to occur in the second half of 2016, subject to finalizing definitive legal agreements and customary regulatory approvals.
The firms said that upon exit, Solvay would receive a final exit price payment of 335 million euros ($378.8 million).
“Thanks to the fast and efficient integration of its teams and assets, Inovyn is now a sound and sustainable chlorovinyls player,” said Jean-Pierre Clamadieu, Solvay's chief executive.
“This allows us to bring forward Solvay's exit and to further focus on its portfolio transformation, while achieving a first step in de-leveraging the balance sheet.”
Jim Ratcliffe, chairman of Ineos, said: “Ineos is very comfortable with the proposed early acquisition of the full shareholding of the Inovyn joint venture.
“Chlorovinyls businesses are core to large petrochemicals companies such as ours and through this planned acquisition Inovyn will have an owner with a long term vision that provides stability for its business and employees.”